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Working with a deep-pocketed Gulf backer could be just what RWE boss Peter Terium needs to restore shareholder confidence and escape budget constraints that have plagued Germany's top power producer. The utility last week disclosed it was in talks with an unidentified Gulf investor, raising hopes that it could receive fresh funds and emerge from a crisis that has saddled it with 31 billion euros ($33.6 billion) of debt.RWE, in turn, is aiming for financially potent investors in its renewable energy strategy.While open to new investors, a capital increase would be "very problematic," said Ernst Gerlach, head of VkA, which represents RWE's municipal shareholders.RWE said nothing could be ruled out in terms of potential outcomes of the current talks and some investor groups have welcomed the prospect of a new shareholder pushing out the municipalities, hoping this might pave the way for a broader restructuring.
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